=+At the end of 2014, Stegline is comparing the costs of several jobs that were started and completed in 2014:

Sunrise model Sunset model Construction period Feb–June 2014 May–Oct 2014 Direct materials costs $106 450 $127 604 Direct labour costs $36 276 $41 410 Direct labour-hours 900 1 010 Direct materials and direct labour are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labour-hours are worked. The 2014 actual building-support costs were $7286375, actual logistics costs were 2454375, actual direct labour-hours were 164200 and actual direct materials costs were $82500000.

Required 1 Calculate:

(a) the budgeted indirect cost rate and

(b) actual indirect cost rate. Why do they differ?